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Gold Seen Lower by Goldman as Fed’s Taper to Spur Selling

Gold will extend a drop into 2014 as the U.S. Federal Reserve tapers stimulus, Goldman Sachs Group Inc. said, forecasting that a decision by the central bank to start reducing bond-buying next week may spur renewed selling.

The reduction of asset purchases may be the catalyst that pushes gold prices lower, analysts including Jeffrey Currie and Damien Courvalin wrote in a report today. Goldman’s economists expect that policy makers will curb quantitative easing at the Sept. 17-18 meeting as the economy improves, the report said.